Debt ceiling

A deal was finally struck within just hours of the deadline for a U.S. budget meltdown. Unfortunately it represents a short-term fix and the problem, as described by the media ad nauseum of "kicking the can down the road" applies.

The Canadian dollar rose to a one-week high against its U.S. counterpart, which weakened on speculation the Federal Reserve will maintains monetary stimulus amid economic disruption from the 16-day government shutdown that ended yesterday.

It appears Washington will probably just manage to thrash out a deal to lift the U.S. debt ceiling at the last minute. But it will likely be a stop gap solution meaning fears over a U.S. debt default will be visited more regularly.

The oil complex is becoming more and more convinced that the Iranian negotiations will make progress and as such oil prices declined across the board on Tuesday. Further, skepticism that the U.S. politicians in Washington will not be able to come up with a deal weighted on oil.